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PROPERTY
MANAGEMENT SYSTEMS
Chapter 7
HISTORY OF AUTOMATION IN HOSPITALITY
INDUSTRY
1. At first, automation was a tool for
producing and analyzing budgets,
repo...
HISTORY OF AUTOMATION IN HOSPITALITY
INDUSTRY
4. Further advances came as computers
were used to analyze captured
reservat...
INTRODUCTION
 What influences technology need for
lodging establishments?
- Department needs
- Guest amenities
 Service ...
INTRODUCTION
 Property Management Systems - PMS
 Evolving
 Complex
 Peer to Peer (P2P)
 Same application installed on...
INTRODUCTION
 PMS - Centric
Model
Property
Management systems
integrate all of the
information needed to
manage
PMS FUNCTIONALITY
 PMS must be able to provide six basic functions
 Enable guests to make reservations
 Enable guests t...
PMS FUNCTIONALITY
 Enable
guests to
make
reservations
PMS FUNCTIONALITY
 Enable guests to check-in/register when they
arrive and check-out/pay when they leave
 At front desk
...
PMS FUNCTIONALITY
 Enable staff
to maintain
guest
facilities
 Room Type
 Status
 Occupant
 Inspections
PMS FUNCTIONALITY
 Account for guests’ financial transactions
 Credit Card Information
 Address Information
 Business
...
PMS FUNCTIONALITY
 Track guests’ activities for use in future sales
efforts
 Information relevant and beneficial to futu...
PMS FUNCTIONALITY
 Interface with other systems
GDS - Global Distribution System
CRS - Central Reservation System
must...
PMS FUNCTIONALITY
 Interface with other systems
HVAC or EMS Systems
In-Room Amenities
Messaging
Security
Call Accoun...
FOUR KEY INTERFACES
 Real-time interface with the GDS/CRS
 The activities management system
 Built-in revenue and yield...
REAL-TIME INTERFACE
 GDS/CRS
 Switches
 Goal: to generate revenue
 Complicated due to different business models
and va...
INTERNET RESERVATIONS MODULE (IRS)
 Most PMS have IRS
 Make reservations online
 Book through Internet
 Eliminate fees...
REAL-TIME INTERFACE
 Tracks guest room and activities
 Cancels appointments if guest cancels or checks
out
 Repairs
 P...
REAL-TIME INTERFACE
 Revenue and Yield Management Tools
 Managing room sales to maximize revenue and
profits
 Examines ...
REAL-TIME INTERFACE
 The Enterprise
 Refers to all systems - front and back
 PMS (front)
 Payroll, Purchasing, HR (bac...
GUI - GRAPHICAL USER INTERFACE
 Interface
 Intuitive
 Fits naturally with expectations
 Ease of training
 Multi-lingu...
PMS EVOLUTION
 1st Generation: Minicomputers
 2nd Generation: UNIX/NOVELL
 3rd Generation: Reservation systems
 4th Ge...
RESERVATION SYSTEMS
 Selling individual reservations
 Selling group reservations
 Displaying room availability and gues...
RESERVATION SYSTEM SCREEN
DISPLAYING ROOM AVAILABILITY
AND GUEST LISTS
 Today’s inventory
 Future date
 7 to 14 day
availability
 Blocked room
RESERVATIONS
 CRS (central
reservation system)
 IRS
 Voice Center
 GDS (Global
Distribution System)
COMPANIES
 Fidelio
 German company
 World Leader
 Was bought by Micros, USA based company
 Now, Micros/Fidelio
CRS
 Decentralize the reservation function
 Centralizes marketing and sales efforts
 One way
 Two way
INTERNET BASED CRS
 Started in late 1990s
 Flexible
 Cost effective
 Compliant with GDS
 Marriott.com / starwood.com ...
DISTRIBUTION CHANNELS FOR A HOTEL
1. Travel Agency (GDS)
2. CRS (800 reservation number)
3. Call the hotel directly
4. Cor...
GDS
ADS/ IDS
OTHER TRAVEL RELATED WEBSITES
SWITCH
YIELD MANAGEMENT
 Yield management rules can be
established for:
 overbooking
 discount control
 length of stay contro...
TRAVELER’S USE OF INTERNET
 87% of traveling population in the U.S. are
online travelers
 88% use the Internet to make t...
GLOBAL DISTRIBUTION SYSTEMS
 Joint ventures linking a number of diverse
businesses
 A big inventory
 Smart Switch
 Tra...
GDS
 There are 4 major GDS
 Amadeus
 Galileo/Apollo
 Sabre
 Wordspan
SMART SWITCH
American Airlines
Unix System
Marriott
Windows Based System
Hertz Rent a Car
OS System
SABRE
Common Platform
SWITCH
 Pegasus
 http://www.pegs.com
 Wizcom (Trust)
 http://hospitality.cendant.com/technology/
PROPERTY MANAGEMENT SYSTEMS
 Property management systems provide data that marketing can use
for:
 Revenue maximization
...
PROPERTY MANAGEMENT SYSTEMS
 Automation helps hotels provide better guest service and related
recognition programs:
 Gue...
FRONT OFFICE SYSTEM
Guest registration
-retrieve reservation
-assign a room
-collect payment
-verify room status
Telephone...
NIGHT AUDIT
 Recording all transactions
 Posting of room and tax
 Producing a trial balance
 Generating reports and up...
VIDEO
 http://www.youtube.com/watch?v=1OFs7130
GKQ
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PROPERTY MANAGEMENT

  1. 1. PROPERTY MANAGEMENT SYSTEMS Chapter 7
  2. 2. HISTORY OF AUTOMATION IN HOSPITALITY INDUSTRY 1. At first, automation was a tool for producing and analyzing budgets, reports, statistics, accounts. 2. Then, automation crept into such areas as sales reports, rooms inventory control, timekeeping. 3. Advancements in telecommunications and technology brought reservations systems and their ability to handle transactions. Source: American Hotel & Lodging Educational Institute
  3. 3. HISTORY OF AUTOMATION IN HOSPITALITY INDUSTRY 4. Further advances came as computers were used to analyze captured reservations data, thus providing important marketing info. 5. Still further advances brought front-office systems that provided guest histories, patterns of use, preferences. Source: American Hotel & Lodging Educational Institute
  4. 4. INTRODUCTION  What influences technology need for lodging establishments? - Department needs - Guest amenities  Service level and customer relationships - Facility size and layout - Organizational structure
  5. 5. INTRODUCTION  Property Management Systems - PMS  Evolving  Complex  Peer to Peer (P2P)  Same application installed on more than one computer
  6. 6. INTRODUCTION  PMS - Centric Model Property Management systems integrate all of the information needed to manage
  7. 7. PMS FUNCTIONALITY  PMS must be able to provide six basic functions  Enable guests to make reservations  Enable guests to check-in/register when they arrive and check-out/pay when they leave  Enable staff to maintain guest facilities  Account for guests’ financial transactions  Track guests’ activities for use in future sales efforts  Interface with other systems
  8. 8. PMS FUNCTIONALITY  Enable guests to make reservations
  9. 9. PMS FUNCTIONALITY  Enable guests to check-in/register when they arrive and check-out/pay when they leave  At front desk  Remotely  PDA  Remote terminal
  10. 10. PMS FUNCTIONALITY  Enable staff to maintain guest facilities  Room Type  Status  Occupant  Inspections
  11. 11. PMS FUNCTIONALITY  Account for guests’ financial transactions  Credit Card Information  Address Information  Business  Home  Room Rate  Room Charges  Night Audit  Collects and Posts Room/Guest Data
  12. 12. PMS FUNCTIONALITY  Track guests’ activities for use in future sales efforts  Information relevant and beneficial to future sales efforts  Accessed by:  CRS - Central Reservation System  CRM - Customer Relationship Management
  13. 13. PMS FUNCTIONALITY  Interface with other systems GDS - Global Distribution System CRS - Central Reservation System must integrate seamlessly even if from different vendors Sales and Catering Applications POS (F&B) Retail Points
  14. 14. PMS FUNCTIONALITY  Interface with other systems HVAC or EMS Systems In-Room Amenities Messaging Security Call Accounting System
  15. 15. FOUR KEY INTERFACES  Real-time interface with the GDS/CRS  The activities management system  Built-in revenue and yield management  The enterprise
  16. 16. REAL-TIME INTERFACE  GDS/CRS  Switches  Goal: to generate revenue  Complicated due to different business models and varying relationships between entities  Real-time: greater flexibility  Costly to develop systems
  17. 17. INTERNET RESERVATIONS MODULE (IRS)  Most PMS have IRS  Make reservations online  Book through Internet  Eliminate fees –Expedia about %12
  18. 18. REAL-TIME INTERFACE  Tracks guest room and activities  Cancels appointments if guest cancels or checks out  Repairs  Pagers, blackberry
  19. 19. REAL-TIME INTERFACE  Revenue and Yield Management Tools  Managing room sales to maximize revenue and profits  Examines multiple variables and provides complex calculations
  20. 20. REAL-TIME INTERFACE  The Enterprise  Refers to all systems - front and back  PMS (front)  Payroll, Purchasing, HR (back)  EAI - Enterprise Application Integration  End goal:  of fewer redundancies  and increase in collaborative synergy  ERP - Enterprise Resource Planning  BPI - Business Process Integration
  21. 21. GUI - GRAPHICAL USER INTERFACE  Interface  Intuitive  Fits naturally with expectations  Ease of training  Multi-lingual  Includes Websites
  22. 22. PMS EVOLUTION  1st Generation: Minicomputers  2nd Generation: UNIX/NOVELL  3rd Generation: Reservation systems  4th Generation: Client-server  5th Generation: GUI  6th Generation: ASP (VPN)
  23. 23. RESERVATION SYSTEMS  Selling individual reservations  Selling group reservations  Displaying room availability and guest lists  Tracking advance deposits  Tracking travel agent bookings and commissions  Generating confirmation slips and various reservation reports
  24. 24. RESERVATION SYSTEM SCREEN
  25. 25. DISPLAYING ROOM AVAILABILITY AND GUEST LISTS  Today’s inventory  Future date  7 to 14 day availability  Blocked room
  26. 26. RESERVATIONS  CRS (central reservation system)  IRS  Voice Center  GDS (Global Distribution System)
  27. 27. COMPANIES  Fidelio  German company  World Leader  Was bought by Micros, USA based company  Now, Micros/Fidelio
  28. 28. CRS  Decentralize the reservation function  Centralizes marketing and sales efforts  One way  Two way
  29. 29. INTERNET BASED CRS  Started in late 1990s  Flexible  Cost effective  Compliant with GDS  Marriott.com / starwood.com / bestwestern.com
  30. 30. DISTRIBUTION CHANNELS FOR A HOTEL 1. Travel Agency (GDS) 2. CRS (800 reservation number) 3. Call the hotel directly 4. Corporate travel agent 5. Hotel website (i.e. Hilton.com) 6. Internet travel agency (i.e. Expedia.com) (Online GDS / ADS/ IDS) 7. Walk-in 8. Other
  31. 31. GDS
  32. 32. ADS/ IDS
  33. 33. OTHER TRAVEL RELATED WEBSITES
  34. 34. SWITCH
  35. 35. YIELD MANAGEMENT  Yield management rules can be established for:  overbooking  discount control  length of stay control  product class control  group evaluation
  36. 36. TRAVELER’S USE OF INTERNET  87% of traveling population in the U.S. are online travelers  88% use the Internet to make travel plans  52% used the Internet to book their travels
  37. 37. GLOBAL DISTRIBUTION SYSTEMS  Joint ventures linking a number of diverse businesses  A big inventory  Smart Switch  Translator
  38. 38. GDS  There are 4 major GDS  Amadeus  Galileo/Apollo  Sabre  Wordspan
  39. 39. SMART SWITCH American Airlines Unix System Marriott Windows Based System Hertz Rent a Car OS System SABRE Common Platform
  40. 40. SWITCH  Pegasus  http://www.pegs.com  Wizcom (Trust)  http://hospitality.cendant.com/technology/
  41. 41. PROPERTY MANAGEMENT SYSTEMS  Property management systems provide data that marketing can use for:  Revenue maximization  Better rooms inventory control  More accurate management of room blocks  Yield management capabilities Source: American Hotel & Lodging Educational Institute
  42. 42. PROPERTY MANAGEMENT SYSTEMS  Automation helps hotels provide better guest service and related recognition programs:  Guests can count on same room, same seat, same car preference as a result of guest history and preference systems  Express check-in and check-out  Automated check-in and check-out  Similar technology has provided automated airline ticketing and car rentals Source: American Hotel & Lodging Educational Institute
  43. 43. FRONT OFFICE SYSTEM Guest registration -retrieve reservation -assign a room -collect payment -verify room status Telephone services - Phone calls - Wake up call -Messages Cashiering and guest check-out -generate folios -post transactions -open and close cashier shift -guest check out Room status and housekeeping management -room discrepancy report -room status report -etc. Front office system
  44. 44. NIGHT AUDIT  Recording all transactions  Posting of room and tax  Producing a trial balance  Generating reports and updating statistics
  45. 45. VIDEO  http://www.youtube.com/watch?v=1OFs7130 GKQ

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